As part of an agreement to end the war with Iran, the United States has authorized the sale of Iranian oil and fuel, marking a comprehensive shift in the economic sanctions Washington has enforced for years.

The US Treasury Department issued a broad 60-day license permitting Iran to sell crude oil and petroleum products until August 21st. This authorization also permits the use of US dollars for payment. This development comes as the US and Iran are engaged in negotiations to achieve a lasting peace agreement.

This waiver even allows for the import of Iranian crude oil and other petrochemical and petroleum products into the United States, opening the door for such shipments for the first time in decades.

This stunning reversal follows nearly a decade of sanctions. Since the Trump administration withdrew from the 2015 nuclear deal during its first term, the US has pursued policies like maximum pressure in an attempt to cripple Iran's economy.

With market expectations that significant volumes of Iranian crude will re-enter the global market, concerns over a supply glut have intensified. This has pushed oil prices near their lowest levels since the war broke out in late February. On Monday, the international benchmark Brent crude was trading around $77 per barrel.

The US Treasury's decision on Monday also permits previously sanctioned vessels to participate in transportation. The US had previously sanctioned numerous ships for their involvement in Iranian oil trade.

The agreement signed by former President Trump on June 17th also requires the US to lift the blockade on Iranian ports and ultimately release billions of dollars in Iranian assets frozen across multiple jurisdictions.